Introduction
To start with, it is essential to distinguish between strategy and planning of a project or budgeting. Strategy is the determination of long-term goals and objectives, and the set of actions for their achievement. In contrast, project planning usually concerns a short-term and a specific dimension, as well as budgeting. Strategic planning refers to the goals that affect the whole organization in one way or another. It brings leaders and stakeholders together to position their organization for success Another point emphasized by Porter (1996), is that strategic positioning is not the same as operational effectiveness as the former implies unique performance whereas the latter denotes doing better but in the same way. The importance of strategy is especially highlighted during times of instability, as is in the case of Desert Hospital. Furthermore, the dire financial outlook is another reason for the implementation of strategic planning as it aims not only at increasing profitability but also at sustaining it.
Limitations
Still, there are some limitations to strategic planning as well. First of all, a lack of time and financial resources is especially acute in healthcare organizations. It can be an obstacle to the successful execution of the strategy. Another limitation is the pace of changes in this industry. As new technologies are constantly developed, it is difficult to plan for a long period. However, one of the critical features of strategic planning is opportunism or a flexible approach and openness to new opportunities. Furthermore, sometimes it can be difficult to combine medicine and business for the leader.
Process: Phase I
The first phase of strategic planning is a situational assessment, which is constituted of resource analysis, stakeholders analysis, and competitor analyses in this case. The participants decided what the hospital should do based on its external environment and its internal capabilities. As for the resource-based approach, according to the VRIO framework (value, rarity, imitability, organization), some possible tangible (central location, clinical programs) and intangible (skills and expertise, quality) assets were determined. Stakeholders analysis was focused on identifying the primary stakeholders and their power ( ). Competitor analysis demonstrated the benefits of cooperation strategies in healthcare, as it allows pursuing similar politics, implementing similar technologies, etc (but staying independent at the same time)
Process: Phase II
The second phase was devoted to strategy formulation, especially, refining the hospital’s mission and vision statement. The hospital’s mission is to provide competent, caring, and accessible emergency and acute care services for the residents of our local community. We are ordinary people operating an extraordinary community hospital. The vision statement is to set the pace for sophisticated care in Desert County. Getting better means all of us will be responsible for taking great care of our patients, each other, and our hospital. Other strategic goals include keeping independence and recruiting new CEO. Therefore, they complement each other in ensuring the uniqueness of the hospital by keeping the services accessible to everyone. Only with the appropriate leader, it can be achieved, making the services of ordinary people extraordinary!
Two decision-making tools that were applied during the strategic planning process included a payoff matrix and a force-field analysis. The payoff matrix allows prioritizing of possible solutions while force field analysis ensures the informed decision-making
Significance
The significance of the mission and vision statement is enormous. The mission is ‘raison d’etre‘, it explains the purpose of the existence of the organization, to motivate both internal and external stakeholders to make their contribution to the development of the hospital. Vision demonstrates the intended future state, or at which point the organization wants to be in the foreseeable future. In our case, it is critical to make the services competent and accessible at the same time as everyone deserves sophisticated care. It also underlines the focus not only on the patients but on each other to cultivate a caring attitude. Moreover, both mission and statements imply that ordinary people working in the hospital, want to take care of their local community, which makes the organization closer to the patients.
New CEO & Independence
As the recruiting of a new, permanent CEO is the primary strategic goal, they need to be able to work with all hospital stakeholders. Thus, it is important to ensure the multi-stage viable process of recruitment, with the help of a search firm, detailed position specifications, screening & interview, with the final decision made with the engagement of the board. The new CEO will also take responsibility for the hospital’s implementation of the strategic goals and following its mission. Independence is of the utmost importance as it highlights the uniqueness of the Desert Hospital with the adherence to its mission and value of serving the local community. Still, it will be difficult to deal with the current financial situation without joining an integrated regional healthcare delivery system.
Generate Buy-in for the Strategic Plan: Creating a Vision
The larger change strategy should be directly related to how the team can generate a vision that works perfectly under the condition where the team is worried about the feasibility of the plan. The core members of the team are going to be held responsible for attaining goals that support the vision and create even more room for improvement. For example, interdepartmental collaborative activities could be initiated to ensure that all team members recognize the need for change. On the other hand, the personal and professional needs of workers will have to be considered if the team expects to attain its objectives in the imminent future. This will not be achieved without a certain level of flexibility displayed by employees when facing organizational change.
Leading Change
On the other hand, team members should be provided with the instruments to resolve the most common uncertainties related to change. The notion of vision can be of help here, as future change cannot be left unprioritized. Each of the team members should have the right to voice their concerns and contribute to the overall success of the organizational change. Even though the employees are unlikely to replace the CEO, their visions and differential views are central to change and a feasible future. From brainstorming to team building, the team could engage in a variety of activities to find the best solutions for the given issues, especially with visionary and transformational leadership in place. In this case, the buy-in will be generated based on continual innovation deployed by team members together with the CEO.
Competitive Advantages
Most of the competitive advantages are intangible, which contributes to the inimitability of these assets. Thus, the unique and valued clinical programs, high quality of service and engagement of physicians, and overall skills and expertise make long-term success more viable. It implies the ability to adjust to new realities, a fast learning process, and a consistent level of patient care. These features are always necessary for viability.
References
Harrison J. S., & Thompson, S. (2015). Strategic Management of Healthcare Organizations : A Stakeholder Management Approach. Web.
HealthKnowledge. (2017). Theories of strategic planning. Web.
Morehouse, B. (2020). Five Lessons from the Pay-Off Matrix. Web.
Peng M., & Meyer K. (2011). International business.
Porter, M. (1996). What is strategy? Web.
Willcocks, L. P. (2021). Business and management in a global context.